Efficiency and limits of monetary policy in the financial instability. Romania's case

In this article we propose ourselves to highlight the impact that the measures of monetary policy have on the general economic mechanism. The purpose of this approach is to confirm, on the one hand, the efficiency of the monetary policy, and on the other hand to highlight its limits in the context of the current spread of the global crisis to the national economies. One of the current problems of the monetary authorities is to use monetary policy instruments so as to provide the liquidity needed for the economic reconstruction and growth. In the case of Romania, however, we draw attention to some problems due to the contradictions between the intermediate objectives of monetary policy. Thus, using the credit channel in order to increase financing resources, the National Bank of Romania diminished the minimum reserve requirements. The reaction of the banking system was unexpected. Credits increased at least two times more than in the countries of the region.